ok ok. i didn't ask on time per downstairs because i want to keep up to date with this morning world but still i would like to have camped my ground how my ancestors lived and this is my treasure their attachment to the church brought ninety's and sisters to this remote land by call more than two hundred fifty years ago they were exiled and persecuted for not agreeing to the orthodox who forms introducing rushing the sixteen hundreds they wanted to maintain their time honored rituals the old believers still baal and cross themselves with two fingers not with three as they do in modern orthodox churches in russia and never knew when praying but his father said he says it's not so much the rituals they cherish as the moral principles he does not approve of what ninety's doing as a group but old believe a woman must never show her naked legs and. things started to spoil during the

soviet union. was more and more young people leaving for big city this year is the all believers culture could be imperiled nowadays young people prefer urban life to devoting their lives to agriculture but now sorry to leave it inside to remember that and try to keep their. plans to continue her studies abroad program by this says wherever she goes as long as the queues are fresh in her memory so is the culture ok. its first very night in moscow you're watching business ought to it's good to have your company libel fixing money and. laundering and more two thousand and twelve

has seen the banking world rocked by scandals this year financial institutions have paid record fine settling over twenty billion dollars buckley's u.b.s. and other banks admitted to manipulating the libel rate h.s.b.c. was fined for money laundering for the mexican drug cartel while misselling and poor consumer protection also drew attention from the financial watchdogs so this is the list of the top bank fines of the year coming in number one on the list is h.s.b.c. in december the bank was fined one point nine billion dollars for failing to prevent money laundering and investigation by the u.s. senate found h.s.b.c. failed to put measures in place to prevent money laundering in its u.s. and mexican operations investigation found h.s.b.c. accounts in mexico and the us were being used by drug barons to hide the proceeds of crime taking second and third spots this year are u.b.s. and barclays which were fined for libel fixing u.b.s.

was fined one hundred billion dollars barclays half a billion altering the london interbank offered rate can make banks look less risky to investors than they actually are and it can affect the rates customers are offered on mortgages and other loans while handing out the fines the u.s. justice department did not mince words the banks it was simply astonishing hundreds of trillions of dollars in mortgages student loans credit card debt financial derivatives and other financial products worldwide or tie to lie boards which serves as the premier benchmark for short term interest rates in short the global marketplace to supply all of us relying on an accurate lie bore u.b.s. like park lease before it repeatedly to fix live or for its own ends. rounding out the list is the u.k.

based bank standard chartered which was fined three hundred million dollars for violation of u.s. trading sanctions american authorities found to have broken u.s. sanctions on iran burma libya done the bank was accused of hiding sixty thousand transactions with iran worth two hundred fifty billion dollars over nearly a decade as well as making transferred to other restricted nations. all right it's time to look at the markets this hour the u.s. markets have resumed trading after christmas and they have continued the trend set right before christmas basically and that's down first session in a row now this is of course still no solution for the fiscal cliff tomorrow work is going to continue thursday that is work is going to continue president barack obama will be meeting with congress for that some of the biggest losers retailers right after christmas that's the case move over to currencies now in a rush or the ruble is seeing a bit of a yo yo really this week it's going up and down pretty much for the same amplitude

day after day wednesday session saw the russian currency again going up around half a percent therefore exchange rates are going down crude oil is up on geo political factors it has been providing support to the russian ruble and to the market this is on the back of a conflict on prices between iraq and turkey and therefore investors are worried that there could be supply disruptions from the region and as i was saying this has been supporting the russian markets although the u.s. were down the r.t.s. in the my six managed to gain within one percent on a stronger price of crude so the strongest stocks were up one point two percent and transport stocks like a lot and after up around one percent. christmas is the gift giving season and the holy spending is enough to put a dent in anyone's wallets or crisis stricken europeans are tightening their belts this whole the season russians are continuing to spend more on holiday shopping

showed look over explains. as christmas celebrations hangover and fortune spent on gifts i already behind most people around the world russians are still preparing to celebrate their main winter holiday their new year's eve and then russian orthodox christmas on the seventh of january and while people are shopping for their last minute gifts experts are calculating how much money they're ready to spend on it this year due lloyd consultancy reports that russians encreasing this spending all gifts and the festive table by almost ninety percent to more than three hundred eighty euros this year compared to the last year and that's while most europeans are consing their holiday spending by an average of zero point eight percent to five hundred ninety euros greeks and portuguese are causing festive spending most severely by thirteen and sixteen percent respectively while germans

are boosting their spending by seven percent to more than four hundred eighty euros so even though russians holiday spending is growing they still spend much less than europeans and traditionally a presence that russians want to give and receive are very different most russians plan to give gifts of cosmetics and chocolates but what they will believe him on that their christmas tree is first monnet them a holiday trip and the jewelry. and what they want leave books for albums and calendars that you happen to call a business r.t. moscow. now has one lucky snowman getting everything in just one second right that's it from us business team on art see after the break we talked to a british m.p. who says he was drawn to politics by the financial crisis and the government's handling of dubai from.

admission and free accreditation a free comes for charges free roaming humans free risk free studio types free. download free broadcast quality video for your media projects and free media don to our teeth dot com.

wealthy british style. markets why not. come to. find out what's really happening to the global economy with max cause or for a no holds barred look at the global financial headlines tune into kaiser report on our. political. goals.

i will tell. goodspeed. her. and her mum with our. police. to solomon sleep good. to sleep her just sleep. and. her. home out of my mind i'm a better little. sleep . please more news today violence is once again flared up the for

these are the images for world he's been seeing from the streets of china definitely shining operations are all today please. thanks. to sitting opposite me today is steve baker a conservative m.p. who first came into politics after watching the two thousand and eight financial crisis unfold steve baker thanks for talking to us tell me what was it about the financial crisis that you found so revealing and so galvanizing in terms of your future where the first thing was that the lisbon treaty had set me off because it was such an obvious trampling of democracy that our boys are prepared to tolerate and that was the final straw but no sooner had i reached that final point than the

financial crisis began to unfold and i've been following the austrian school of economics since two thousand when the dot com bust happened i was looking for a reason why because i was doing a masters degree at oxford trying to get into software and suddenly my investment in looks oh wise so i discovered the austrian school the monetary theory of the trade cycle predicted very much what happened then and what's happening now but i cast it aside because i thought if there was anything in it the economists and the politicians would sort out the monetary regime the banking system. and of course they didn't so when the crisis broke i was delighted i was still on a trajectory to parliament and i co-founded the compton center to try and get these ideas out in the public space one of the things that you've campaigned against quite vociferously is bailouts does that mean that you think a lehman type event would be good for the e.u. economy well none of these things really are good the problem is not so much whether one piece of dreadful pain or another would be a good thing it's how to best get back to sustainable inclusive prosperity which

people can see is just now what we've had is particularly the last thirteen years the money supply in the u.k. and for tripled under new labor this great torrent of new money goes to particular sections of society first creates all sorts of sorts of unwanted non helpful economic activity and then the chaos sooner. later has to be revealed and that chaos was revealed for example this happened worldwide it was revealed lehman brothers but i don't want the pain but what i recognize is that the sooner we take the pain in the correction and the adjustment which is inevitable the sooner we'll get back to sustainable prosperity which is best way to to fight poverty surely the justification for bailouts is that they are a stabilizing mechanism. well people just desperately do not want pain and i include politicians and economists and that of course the public as well but really the whole economies right around the world has been painted into a corner and you know we've had cheap interest rates artificially cheap interest rates and consequently

a great flood of new money the choice now is going to continue having a flood of new money which you can see at the moment is the choice with q.e. although the modest quantities either keep having new money and ultimately that will lead to inflation and probably accelerating inflation or you stop accelerating the supply of new money and you take a correction now neither neither part is painless but i'm arguing is that those two parts are inevitable at the moment we're stuck in a sort of. stagnation but it won't go on forever the u.k. is a country with a strong banking lobby how likely is it to think that a no bailout policy would be instigated it doesn't feel very likely at the moment what role do you banks play in politics well at the moment the situation is that banks in the state a very very tightly interwoven the idea that banks are free market institutions is faintly ridiculous they're absolutely riven by not only by privileges like tax payer funded deposit insurance and lender of last resort also the whole credit

markets are centrally planned by the central banks so politics that they are actually banks themselves are part of an enormous monetary power in the world which is directed by central banks so they're very very tightly coupled also when you look at the revenues from the banking system you can see that the banking system inflationary money is a very important part of funding the welfare state so they're incredibly tight you can called i don't actually think that's very healthy or in anybody's best interests how do you characterize them that relationship between the banks and the state is it a sinister kind of a partnership sinister is kind of the wrong word and with these things i try to stay very close to the literature and to facts because obviously there are people out there will sorts of wild ideas i don't think it's sinister i think it's. the automatic consequence of people having commercial interests and seeking to capture the state as people have always sought to done in all sorts of industries seeking to capture the state to their own advantage so it's not sinister but what it is is unhealthy and it's also completely understandable given the sort of public choice

factors involved you mention central banks just a mess again but you say that economies can get on perfectly well without central banks well you look at the united states now the federal reserves are relatively recent in asian and it was supposed to stabilize prices and no sooner was it was implemented than there was an enormous boom ending in a dreadful bust which at least prior to this one was the worst the world had ever seen and so i don't think that central banks are actually a stabilizing factor i think they're a destabilizing factor i don't pick advocate of free banking but you know what i'm not alone alan greenspan wrote a wonderful essay called golden economic freedom in which he had the catered free banking and banking without without central banks so i think we should have this conversation how it worked they without that overseeing body well you know that's an interesting question because in more or less any area of economic life we take for granted that there isn't a central planning or thorazine we don't have

a track to planning or for it's your bread planning or thorazine in the u.k. or indeed in the united states we just know that there are ways to be tractors and there always be bread in fact it always be a rich variety of bread of different kinds of different price points but when it comes to money and banking the commodity where money is the commodity on one half of every commercial transaction we take for granted the existence of committees of wise men planning it's price and quantity so some sometimes i think it's like the emperor's new clothes what's wrong in the world is the system of banking and of money in credit that system is centrally planned in a way that we would not tolerate with any other commodity precisely because we know if we if it was centrally planned they get it wrong so that the emperor's new clothes need to be so it just isn't the emperor's naked has to be revealed and we should be really looking hard at central banks and how they're destabilizing our whole social system. how is it then that means central banks politicians that can't let go that bankers need central banks if you were to trace back through the way

that banks work mervyn king said of all the many ways of organizing banking the worst is the one we have today so what characterizes banking we have money money backed by nothing notes and coins are just paper money in token coins. but actually most of the money supply is accounting entries but it doesn't account for anything it's just an accounting entry so that's the first thing we have fractional reserve deposit taking which means that when you put your money in the in your current account it belongs to the bank they are able to use it to fund themselves taxpayer funded deposit insurance lender of last resort central planning all of these things taken together are hugely destabilizing and actually they're not helping so how would it work the way it would work in for a free banking system you'd have commodity is the basic a commodity is the basis of money normally gold or silver in the past you wouldn't have limited liability for bank directors and again that used to be normal people used to accept partnerships trustee savings banks mutuals instead of profit making

because the various factors him. toxic taken together i'm all for profit making but what you can't have is profit making on balance so so the way it would work is the normal rules of contract property would work instead of having this system of state planning state control and the legal privileges it would work through the free market quantitative easing to another bear if you as you say it's part of the problem and not a solution to the crisis so what's happened if you look back a particular over the forty years since bretton woods but you know especially the last thirteen years there was an enormous increase in the money supply we've based our economy on that increasing money supply so the crazy thing about q.e. is it's not actually new this idea of increasing the money supply it's just that it was previously much more insidious. what's happening with q. is it's just ducking the problem that the central banks politicians are trying to

restart with the money creation process in the hope that the economy will restart everybody get reelected in the cruel fantasy is being maintained that everything can go on as it was before so what q.e. is doing is maintaining a cruel fantasy and it's also introducing further distortions kids who gets the new money first. banks people close to banks the state it's just further distorting our economy towards banking towards hosing towards the state and that's really is not healthy direction of travel the us as we know has done a lot of quantitative easing how much inflation is the u.s. exports globally with that policy well i think it's the us is exporting considerable inflation in fact if you look i don't know particular gold bug but there's a wonderful website priced in gold dot com if you look at the price of oil in gold it's been stable since the end of the second world war it's been low and stable the prices hardly increased in fact last time i checked the price of oil in gold was

lower than it was at the end of the second world war if you. look at the price in dollars of course since one nine hundred seventy one the price of oil has been high in very volatile and there's something going on here that are there is obviously to do with the supply of dollars because the supply of gold is relatively fixed supply of dollars is relatively volatile and as a result the result which is that universal global commodity traded in dollars is highly volatile so i think actually there's a really profound and fundamental problem with the dollar and commodity prices i put it on the record in hindsight of ask the government to look at it i really just want to keep pushing that banging that drum to see if we can get some sense into our monetary order. back in this country and you say we're in a crisis of state intervention what does that mean it's been true for most of the last forty years governments have spent more than they could take in taxation they've then borrowed and then they've allowed of the currency to be debased through the credit markets and this whole nexus of state intervention in the

economy state bent debasement of money is ruinous but i had to it it was once enough to say that capitalism was the private ownership of the means of production but then ownership also meant control and the private bearing of commercial risks but today people may well own capital but they end up so constrained by regulation and taxation that they don't really effectively control it and you can see in banking that they don't their own commercial risks. so this is not a capitalist system it's a heavily interventionist system so basically you're all for rolling back the state well i am for rolling back the state but it's not for some spending i don't see a logical reason it's just obvious that our present social system is manufacturing poverty and injustice so what i want is a system which manufactures justice and prosperity and it seems to me we've got a choice we can either roll forward the state which from current levels means effectively becoming communists or we can roll back the state from where we are

roll back regulation accept the need to allow corrections to prices to wages to in for to interest rates and allow the forces of social cooperation to generate the wealth that we know that they can so it's but it's of course it's difficult and it's frightening because two thirds of government spending in the u.k. is welfare health education and interest now we're not going to have lower taxes and smaller state without reducing spending on those areas and i recognize that that's why i talk so often about mutuals i really think that welfare and health in particular would be better delivered by mutual lives in those services it is worrying that isn't there i mean if you roll back the welfare state isn't there a huge risk of leaving the poorest and most vulnerable in society exposed. well this is the this is why i are i'm so insistent that we must change the system of money because this this cycle it's a complex cycle of state spending on the deficit plus currency debasement to

maintain this idea that we can all live each other's expense through the state it's increasingly obvious that it's a cruel fairy tale now i come from a very ordinary background my mother my father dependent on the state pension and the n.h.s. but it's a cruel fiction we have to get to the point where we are actually able to to sustain ourselves in a way which can go on indefinitely because at the moment if we look forward and just look at the what the west of the world's debt projections it is obvious that in our lifetimes i mean in our lifetimes that the current system of society will come to an end the question is not whether it will it's when it will in the manner in which ones and politicians are going to have to really step up to the mark and be honest with the public and say we just cannot meet these promises we need to make new promises which can be fun the more mostly and have a productive and inclusive economy which is just and more steve baker thank you very much you're most welcome.

you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realized everything you thought you knew you don't know i'm tom harkin welcome to the big show. the rifles decades. if you're fifteen thousand people killing each other in any other country. diplomats there will be a lot of. self-imposed out costs from society i will attack myself and my point brother

understand my. going to leave basically at the cost of my anger and my frustration. that. well i don't want. to lose the most violent gangs in u.s. history. as a stall model kill or be killed with colors matching the national flag. of this country uses violence when it reaches and then it legitimizes them. they are made in america on the.

plague. well going into the future this month high tech means could help whether it be the latest laser cutters or lifesaving heart valves rushing innovators are working hard to keep you healthy person company it's been

a winding road from car simulators to cutting edge training systems for others it's been a lifetime of work a looking the mysteries of the self check it all out on technology update we've got the future covered. hold it hold it. hold it no. luck. but speak. to. her.

and. wish. all of the missile good love. love. me. and i'm a. little mouse run i'm a little. it is. a. little. bit.